Break-Even Calculator Guide: Formula & Worked Example
Short answer
Units you need to sell to cover your costs. In the fixed example below, break-even units is 500. Your answer depends on the inputs and assumptions you choose.
Formula
Result = Break-Even Calculator calculation using fixed costs, price per unit, variable cost per unit
The inputs are fixed costs, price per unit, variable cost per unit. Use the input scale shown beside each field and keep time periods and units consistent. Only round the final result for display.
Worked example
- Fixed costs
- 10000
- Price per unit
- 50
- Variable cost per unit
- 30
- Break-even units: 500
- Break-even revenue: 25,000.00
- Contribution margin / unit: 20.00
Understanding the result
Units you need to sell to cover your costs. Start with the base example, then replace each value with the figure that matches your situation.
Fixed costs
The example uses 10000 for fixed costs. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Price per unit
The example uses 50 for price per unit. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Variable cost per unit
The example uses 30 for variable cost per unit. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
What the comparison means
The comparison changes only fixed costs, keeping every other example input fixed. This isolates that input's effect on the primary result. It does not predict future outcomes.
Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.
Comparison
| Scenario | Input | Result |
|---|---|---|
| Lower input | Fixed costs: 8000 | Break-even units: 400 |
| Base example | Fixed costs: 10000 | Break-even units: 500 |
| Higher input | Fixed costs: 12000 | Break-even units: 600 |
Common mistakes
- Using the wrong units for fixed costs.
- Comparing results while changing more than one input at a time.
- Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.
Checklist
- Confirm fixed costs.
- Confirm price per unit.
- Confirm variable cost per unit.
- Check the result against your source or provider.
Calculators Percentage Editorial Team
Calculator guides from the Calculators Percentage team. These introductory examples are educational, not professional advice.
Last reviewed:
Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.